Green economic development by increasing efficiency of natural resource consumption

The present study aims to assess the implications of fossil fuels resource efficiency on sustainable development across two distinct cohorts comprising 26 oil-importing economies and 19 oil-exporting economies, spanning the time period from 2000 to 2020. Employing empirical estimations through the Pooled Mean Group (PMG) technique, the research reveals that the sustainable development index in oil-exporting countries exhibits higher sensitivity to the efficiency of fossil fuels resources and the poverty rate, compared to oil-importing nations. Moreover, the impact of carbon dioxide emissions on the sustainable development index is notably more pronounced in oil-importing countries than in their oil-exporting counterparts. Additionally, the sustainable development index in oil-exporting economies demonstrates heightened sensitivity to temperature fluctuations, exceeding that observed in oil-importing nations. In pursuit of fossil fuels resources efficiency and sustainable development, the implementation of strategic measures such as carbon taxation, Fintech-driven initiatives, and the integration of green cryptocurrencies should be encouraged in both country groups. •Energy efficiency accelerates sustainability in oil-exporting and oil-importing economies.•Poverty rate impedes sustainable development index in oil-exporting and oil-importing economies.•Temperature decelerates green development in oil-exporting and oil-importing countries.